BATS Global Markets Withdraws Initial Public Offering
24 March 2012 - 7:40AM
Dow Jones News
BATS Global Markets Inc. withdrew its initial public offering
Friday after a day filled with cancelled trades and
uncertainty.
The company, which priced its 6.3-million-share deal at $16
Thursday night, had been scheduled to trade on the BATS Exchange,
but ran into problems from the moment it opened.
The stock was halted in the morning for "clearly erroneous"
trades after it opened. BATS issued an alert on its website that it
was "actively investigating an issue." The exchange issued an alert
at 10:48 a.m. EDT that there were "system issues in symbols range A
through BF."
BATS didn't explain what went wrong with the trading in its
shares. In a statement just ahead of the market's close, the
company's chief executive said the deal was being withdrawn.
"Although our affected market has reopened, in the wake of
today's technical issues, which affected the trading of certain
stocks, including that of BATS, we believe withdrawing the IPO is
the appropriate action to take for our Company and our
shareholders," said Joe Ratterman, chairman, president and CEO of
BATS Global Markets.
Even though BATS had priced its IPO, it was still able to
withdraw the deal because the trades weren't scheduled to settle
until March 28.
Besides BATS, shares of Apple Inc. (AAPL) were temporarily
halted in the morning for five minutes after erroneous trades were
made on BATS's exchange. According to FactSet, orders placed
through the BATS Global Markets came in well below where Apple had
previously been trading.
-By Lynn Cowan, Dow Jones Newswires; 202-257-2740;
lynn.cowan@dowjones.com
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